Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices in India were trading higher on Thursday, following positive global cues. On Multi Commodity Exchange, gold August futures were ruling 0.3 per cent or Rs 168 at Rs 50,908 per 10 gram. Silver September futures were trading Rs 1,180 or 2.15 per cent higher at Rs 56,024 per kg. Globally, yellow metal prices extended gains as the U.S. dollar and Treasury yields fell after the Federal Reserve raised interest rates by 75 basis points as expected and its chairman sounded less hawkish on future hikes, according to Reuters. Spot gold was up 0.2% at $1,736.89 per ounce, after rising 1% to a two-week high in the previous session. U.S. gold futures rose 0.9% to $1,734.80 per ounce.
Navneet Damani, Sr. Vice President – Commodity & Currency Research, Motilal Oswal Financial Services
Gold and silver prices posted gains as the U.S. dollar and Treasury yields fell after the Federal Reserve raised interest rates by 75 bps as expected and its chairman sounded less hawkish on future hikes. Governor Powell mentioned that recent indicators of spending and production have softened, Inflation concerns still exist in the market and the impact of earlier announced rate hikes is not completely seen in prices yet. Fed Chair Jerome Powell said another “unusually large” increase in interest rates may be appropriate at Sept. meet, but decision will be determined by incoming economic data. Sept. Policy meetings could hold a few surprises as with larger rate hike expectations and increase in pace of balance sheet trimming we will also get inflation and growth forecasts from the Fed. If growth numbers continue to disappoint and report in the negative zone it could further support bullions. Broader trend on COMEX could be in range of $1705-1750 and on domestic front prices could hover in range of Rs 50,600-51,300
Tapan Patel, Senior analyst — Commodities, HDFC Securities
Gold prices traded firm on Thursday with spot gold prices at COMEX were trading 0.20% up near $1738 per ounce in the morning trade. MCX Gold August futures opened higher in line with strong COMEX prices, trading 0.48% up near Rs. 50961 per 10 gram. Gold prices rallied after US FED hiked key interest rates by 75 bps in line with market expectations. The FED agreed that economic activities have slowed down and was less hawkish in their comments which drove prices to high. The US FED is still committed to control inflation and is expected to raise interest rates by 200 bps in the remaining months of 2022. The sharp fall in the dollar index also supported buying in the yellow metal. We expect gold prices to trade sideways to up with COMEX Spot gold support at $1720 and resistance at $1750 per ounce. MCX Gold August support lies at Rs. 50600 and resistance at Rs. 51300 per 10 gram
Bhavik Patel, Commodity & Currency analyst, Tradebulls Securities
The US Fed did not disappoint the market and raised a 75bps rate hike as expected. It is also the first time this year, the Fed chairman appeared dovish and continues to toe the line that Fed will be data dependent regarding any future decisions. Following the announcement, gold staged a relief rally and jumped till $1740 from $1711. Today the market will react to the US second quarter GDP number which is expected to be softer than previous data however the US Fed has not acknowledged recession as US labour data is strong. Powell highlighted that the U.S. monetary policy is now at neutral, which means that the Fed could soon start slowing its rate hike pace. This was key for the market to rally and the US dollar to retreat as from now on the US Fed will not be hiking rates aggressively. Gold is expected to trade higher till $1755-$1760 where its previous resistance is. In MCX, resistance is at 51350-51500 while support is at 50500. Bias is neutral to bullish for the day.
Pritam Patnaik, Head Commodities, HNI and NRI Acquisitions, Axis Securities
The US Federal Reserve hiked up its benchmark overnight interest rate by 75 basis points in an effort to bring down the burning inflation under control. The outcome of the meet was widely in expected lines. The Fed also indicated that the central bank could slow the pace and size of future rate hikes if the economy cools. The ongoing increases in borrowing costs against a backdrop of a decelerating economy, is a recipe for an economic meltdown. The dollar index and bond yields cooled off due to the forward guidance on the rate trajectory, propelling gold prices. A drop of close to 8% in the physical demand in gold did little to dampen the rally, as the precious metal looks to unshackle from the bear’s grasp.
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